Why a Business Checking Account Is a Must-Have for Every Entrepreneur

Starting your own company?

You’ve already thought about your brand colors, built a website, ordered inventory, or built your offer. But have you opened a business checking account yet? It’s not fun, but it is one of the best first steps you can take.

By setting up a separate account, you can keep your personal and business finances separate. This makes budgeting and dealing with taxes and accounting a lot easier. But, there’s more to it than that.

Prospective clients, vendors, or banks will have a better opinion of you. And you’ll be signalling that you are in business for the long term because you are established and professional. After all, you’re treating your business finances much more seriously from the foundations — and that sets you apart from day one.

Skip the Chaos: Keep Business and Personal Separate

When you’re first starting your small business, it’s tempting to use a single bank account, especially if you’re running as a one-person show or are only operating on a small level. But those decisions will end up being a thorn in your side fast. Soon, you’ll find yourself endlessly scrolling through the bank’s app or website, interrogating yourself about whether that $82 withdrawal was for Post-its or your nephew’s birthday present.

A business checking account solves that anxiety entirely. Even if you’re just starting to build your business, a business account makes it simple to separate your work expenditures from your personal life. It also makes tax season smoother for you and grants a clearer, more accurate picture of how your business is performing now.

Build Credibility with Every Transaction

Clients, partners, vendors, and other people you do business with notice the little things, especially those involving money. Transferring payment from your business checking account or receiving payment in your business’s name fosters the perception that you’re serious, organized, and invested in contract work.

That you are not just a hack job doing this on the side. You are a well-oiled machine. That peace of mind helps you forge business relationships with others - plus it reflects well on you when it comes time to take out a loan, meet with investors, or apply for funding.

You don't have to be loud with your professionalism. Something as simple as a business bank account can attest to the type of operation you run.

Simplify Taxes and Accounting

Doing taxes is a headache, and it definitely doesn’t help if your transactions are all spread out in emails, various scraps of paper, and a personal account full of Amazon purchases and coffee runs. A business checking account deals with that chaos. It houses your income and expenses in one location, so you can easily see what came in, what went out, and what’s tax-deductible.

No more guessing. No more chasing down transactions. Just neat rows of tax receipts that make your life easier when tax season comes. Your accountant will be happier. If you’re doing it yourself, you won’t have to waste time backtracking and making costly errors while you’re at it.

Unlock More Financial Tools

A business checking account doesn’t just store your money. It makes money work for you. With a business checking account, you’re not just getting your funds under control. You’re getting them ready to go to work for you. With providers like Bluevine, it’s things like earning on your account balance, hassle-free account management online, and access to flexible funding as you expand.

When everything is in one place, running in sync, it’s a lot easier to make good calls when you need to. For example, when you’re thinking about hiring a new staff member, equipment upgrades, or a big contract coming through, it’s more than banking on it. It’s building on it.

Save Time, Stress Less

As a small business owner, you wear many hats. You’re the developer, the marketer, the support team, the COO. It seems like your to-do list never ends. The last thing you need is to waste time untangling a web of payments or defending your books during tax season. A business checking account helps you to keep your finances in order so you can move forward.

It’s all in one place, it’s organized, and it’s separate from your personal finances. No more head-scratching, no more sorting charges, and no more wasting time. Now you can stay focused on building your company and creating awesome customer experiences.

Ready When You Are

Just getting started with your small business? The best way to form good habits is to practice them from the beginning. Setting up a business bank account is the first step to developing your money management skills as your business grows. It will help you have a more organized, clear, and calm relationship with money—and won’t even complicate things.

Today’s online-first platforms, such as Bluevine, streamline the process and make it easier to set up smaller businesses. Don’t wait for things to get more difficult. Start from the ground up now and let your business operate like it’s already a professional one.